Hanwha Construction Completes Public Bond Demand Forecast... 'Increased Issuance to 93 Billion KRW'

원본보기 아이콘

[Asia Economy Reporter Onyu Lim] Hanwha Construction is planning to increase the issuance after achieving a full subscription in the first public bond demand forecast conducted following its credit rating upgrade.

Hanwha Construction announced on the 10th that it achieved a full subscription by raising a total of 119 billion KRW in the public bond demand forecast held on the 5th for 80 billion KRW. This public bond issuance was the first demand forecast conducted after Hanwha Construction was upgraded to an A- rating by the three major domestic credit rating agencies last year (Korea Ratings, NICE Investors Service, and Korea Credit Rating).

Based on the results of the public bond demand forecast, Hanwha Construction confirmed and disclosed on the 7th that it would increase the issuance to a total of 93 billion KRW. A Hanwha Construction official explained, "Stable business performance and the credit rating upgrade appear to have positively influenced the improvement of external credibility."

In the previous public bond issuance, Hanwha Construction issued a 3-year bond worth 45 billion KRW at an interest rate of 3.379%. For this issuance, they plan to increase the issuance to a single 3-year bond totaling 93 billion KRW, and the interest rate is expected to be decided in the 3.2% range, reducing interest burden.

Additionally, with this bond issuance, it is expected that the capital structure can be improved by refinancing existing short-term borrowings of 3 to 6 months with relatively longer maturity public bonds.

Meanwhile, Hanwha Construction has achieved cumulative sales of 2.9117 trillion KRW and operating profit of 199.4 billion KRW in the third quarter of 2019, continuing its operating profit surplus for four consecutive years.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.